Halalan-Thayyiban Economics: Integrating Ethical Values and Sustainability in Islamic Finance

Halalan-Thayyiban Economics offers us an ethical framework to integrate financial practices with sustainability principles. It compels us to go beyond profit maximization and embrace a holistic approach that harmonizes economic growth with social equity and environmental stewardship.

The connection between economies and ecosystems operates as an ongoing cycle. Economies rely on the environment to supply essential natural resources such as timber, minerals, water, and energy. In return, the production of goods and services produces waste that re-enters the ecosystem. Ideally, this waste is treated and repurposed, forming a closed-loop system where resources are continuously recycled, fostering a sustainable cycle that supports a resilient economy.

However, unsustainable human activities continue to degrade vast areas of the planet and if we continue our production and consumption patterns as is, this could result in widespread ecosystem collapse and further biodiversity loss. The climate crisis continues to be the greatest existential threat to humanity and will exacerbate challenges of poverty, food security, water supplies, natural disaster resilience and peace.

The 2023 edition of the Global Risks Report by the World Economic Forum highlights critical inflection points across various areas. Notably, looking ahead ten years, four out of the six primary global risks are directly linked to environmental and climate change, underscoring the urgency of addressing these issues. These primary risks include failure to mitigate climate change, failure of climate change adaptation, natural disasters and extreme weather events, and biodiversity loss and ecosystem collapse. The report serves as a call to action, urging collective preparation for future crises and advocating for initiatives that lead to a more stable and resilient world.

• The Quran reminds us in Surah Al-Baqarah (2:168):

Eat of what is lawful and good on the earth,.

This verse highlights the dual principles of halal (permissible) and thayyib (pure, wholesome, and beneficial).

• The Prophet Muhammad (peace be upon him) further elaborates on the essence of halal and thayyib, emphasizing their significance, “The believer is like a bee which eats that which is pure and wholesome and lays that which is pure and wholesome”. The bee is also described as gentle, not breaking or ruining the flowers it lands on.

The Hadith carries profound lessons about a believer’s conduct, particularly in relation to sustenance, ethical behavior, and environmental stewardship.

Key Insights:

1. Eating Halal and Thayyib (Pure and Wholesome):

The comparison to a bee underscores the importance of consuming what is halal (permissible) and thayyib (pure, beneficial, and wholesome). Just as a bee only gathers nectar from the best and purest flowers, believers are encouraged to ensure their sustenance is both lawful and beneficial, obtained through ethical and righteous means.

2. Leaving Behind Benefits for Others:

The bee not only consumes but also produces honey—a pure, nourishing, and beneficial substance. This teaches believers to lead lives that contribute positively to others and their surroundings. They should aim to leave behind a legacy of good deeds, beneficial knowledge, or contributions that enhance societal well-being.

3. Gentleness and Non-Destructiveness:

The hadith also describes the bee as gentle, not causing harm to the flowers it lands on. This symbolizes a believer’s responsibility to seek livelihood and interact with the world in ways that do not cause harm or destruction. Whether in economic activities, personal habits, or environmental interactions, believers are reminded to adopt sustainable and compassionate practices.

While halal and haram remain fundamental, Islamic economics must expand its scope by integrating the concept of thayyib. This shift, grounded in the Quran and Hadith, promotes a more comprehensive and ethical approach to finance, encompassing the well-being of all stakeholders and the environment.

In practical terms, this means:

1. Leveraging Shariah-compliant financial instruments to fund renewable energy, climate-resilient infrastructure, and sustainable urban development.
2. Channeling funds toward industries that generate positive social impact, such as education, healthcare, and sustainable agriculture.

3. Strengthening microfinance initiatives to uplift marginalized populations, ensuring inclusive access to financial services.

Let us also not forget the role of innovation. The intersection of Islamic finance and digital technologies offers unprecedented opportunities to scale up sustainable practices. Blockchain, for instance, can enhance transparency and traceability in halal supply chains and zakat-infaq-shadaqah-waqf funds, while fintech can bridge gaps in financial inclusion.

By embracing the concept of thayyib, Islamic economics can create a more just, equitable, and sustainable economic model that benefits not only Muslims but also the wider community and the planet as a whole. This approach aligns with the core Islamic values of Rahmatan lil ‘alamin that bring social responsibility, environmental stewardship, and compassion for all creation.

As we celebrate the paces we have made and the partnerships we continue to forge, I urge each of us to think about the legacy we leave behind. The implementation of Halalan-Thayyiban Economics is not merely a moral obligation—it is a strategic imperative for addressing the intertwined challenges of climate change, poverty, and inequality.

In closing, let us reaffirm our commitment to the maqasid al-shariah, the higher objectives of Islamic law, which seek to preserve faith, life, intellect, posterity, and wealth. May our efforts tonight and in the future embody these noble aspirations, inspiring others to join us in creating a just, sustainable, and thriving global community.